Treasurer Tim Pallas explains why Victoria is rescuing Alcoa’s Portland smelter

Alcoa says it will restart operations at it’s Portland aluminium smelter after a $230m rescue package.

Victoria will contribute $50m a year, while the Commonwealth is investing $30m.

The future of the smelter had been uncertain due to higher power prices and a power outage which caused significant damage.

The investment will secure more than 500 jobs, but only for the next four years.

Treasurer Tim Pallas told Tony Jones the investment will reach far beyond Portland.

‘The economic benefits to the State of Victoria sit at around $382m per year,’ Mr Pallas said.

‘We’re preserving our sixth-biggest export, a commodity that brought in something like $800m worth of revenue in the 2014-15 financial year.’

Click play for the full interview